I've noticed that more of my traffic comes from MSN then Google or Yahoo, is this normal for a newer site?

I believe Google is somewhat biased toward content on authoritative domains ie. not new site. Such sites tend to be listed as more relevant in the search results...

The smaller the site is, the harder it can be to be higher ranked (and thus get more traffic)

Google and Yahoo usually take time to crawl new websites..

See the results after some time

It will be better from Google and Yahoo..

i get this with new sites to, all my traffic for one sites comes form msn. not a great deal thought, msn has the tendancy to drop my sites for no reason.

One day ill check im in top 10 then i checked this morning and for same kywordi dropped to like 100+

Wait till your site gets more links and grows old, google will be in your favour.

p.s ive never had any luck with yahoo so cant comment on them

MSN put more emphasis on domain names if compared to the content. For example you have a domain "websitemarketing.com", you can easily acquire good SERPs for the keyword "website marketing" even if your content isn't very strong. However, Google prefer more quality content.

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i think so since MSN is more on domain names

msn search engine are very good but no better tahn google search engine or yahoo search engine!